RNS Number:0752J
Conroy Diamonds & Gold PLC
28 February 2005
CONROY DIAMONDS AND GOLD PLC
INTERIM REPORT 2004
CHAIRMAN'S STATEMENT
Dear Shareholder
I have great pleasure in presenting your Company's Interim Report for the six
months ended November 2004. Your Company continued to make further progress in
the period covered by this report. Exploration work at your Company's gold
projects in Ireland continues to provide excellent results.
In situ bedrock sampling at Glenish in the Armagh-Monaghan Gold Belt returned a
1m channel sample grading 9.40 g/t gold and grab samples from the area assayed
up to 2.45g/t gold. The style of mineralization seen here is similar to that
seen at other locations in the Armagh-Monaghan Gold Belt.
As well as detailed investigation at Glenish, regional soil sampling in the
Armagh-Monaghan Gold Belt continued. This focused on sample collection along the
strike of the Orlock-Bridge Fault between Tullybuck-Lisglassan and Glenish and
involved the collection of approximately 1,000 samples to date. Results from
soil sampling continue to generate new areas of gold-in-soil anomalism in the
Belt.
The recent discovery of anomalous bedrock gold at Slieve Glah in Co. Cavan is
particularly encouraging. This area lies 45km south-west of the Armagh-Monaghan
Gold Belt, at the south-west of your Company's 1.500km2 exploration licences
over the Longford-Down Massif.
Two zones of gold mineralisation 400 metres apart have been outlined at Slieve
Glah. Deep overburden sampling has to date covered only one fifth of the
original soil anomaly, and the results indicate that there is excellent
potential for this to become another gold discovery in the Massif.
All of your Company's gold discoveries to date in the Massif are spacially
related to the Orlock Bridge Fault and are seen to be structurally controlled.
Your Company previously identified Slieve Glah as a structural target because a
significant strike swing of the Orlock Bridge occurs at that point and may have
created a dilation zone in the area.
Significantly, in its recent report on your Company's gold prospects in the
Longford-Down Massif, SRK Consulting identified Slieve Glah as one of three
particularly prospective areas, the others being Armagh-Monaghan Gold Belt and
an area within your Company's licences in Northern Ireland. SRK based in
selections on structural interpretation and lineament analysis which indicate
that a major deep-seated lineament intersects the Orlock Bridge Fault in the
Slieve Glah area. In this context the consultants comment that major economic
gold deposits elsewhere in the world have often been found on such lineaments.
The Exploration Status Report by SRK on your Company's gold properties is of
major significance. It is extremely positive and gives increasing encouragement
to the company's aim of establishing a new gold province in the Longford-Down
Massif.
SRK concur with your Company's broad based approach to exploration, and say this
policy should continue, whilst concentrating on the three selected areas
outlined. SRK have established that the geometry of high grade soil geochemistry
anomalies reinforce the structural controls of the Orlock bridge Fault and
associated cross cutting structure on mineralization.
In a detailed assessment of the Company's drilling and sampling results at
Tullybuck-Lisglassan (Co. Monaghan), SRK conclude that the area drilled to date
has the potential to host over 100,000 ounces of gold.
They point out that this closely drilled area at Tullybuck-Lisglassan represents
only a tiny part of much larger anomalies. These cover an area over 200 times
the size of that drilled, and are considered to have better potential.
The consultants believe that there is potential to find similar or larger
deposits than Tullybuck-Lisglassan in the Longford-Down Massif and that the
results gathered to date are positive and advance the Company towards its
initial target of discovering over one million ounces of gold in the Massif and,
obviously, a potential for very much more.
FINANCE
In June your Company decided to transfer its diamond interests to a newly
incorporated company, Karelian Diamond Resources plc ("Karelian"). The de-merger
was effected by means of a Scheme of Arrangement, whereby the diamond interests
were transferred to Karelian in consideration of the issue by Karelian of one
fully paid ordinary share to the Company's shareholders for every six shares
held. Shareholders approved the Scheme of Arrangement on 8 July 2004 and agreed,
subject to sanction by the High court, for the share premium account to be
reduced Euro1,025,000, being the book value of the diamond interests transferred.
On 26 July 2004 the High Court Sanctioned the Scheme of Arrangement and
confirmed the reduction of the share premium account. Thus the mineral interests
in the balance sheet at 30 November 2004 have been reduced by Euro1,025,000 and the
share premium account has also been reduced by that amount. hTe debtors figure
includes amounts that had been expended by your Company in relation to the
de-merger which it is anticipated will be recovered from Karelian.
In January 2005 your Company raised #250,000 (Euro362,000 approx), which, together
with the facilities available to the company, is financing the current phase of
the Company's activities.
The confirmation by SRK of your Company's approach to exploration and the
potential and scale of the Longford-Down Massif project, brings your Company to
the stage where it may either continue solo or consider entering into a joint
venture.
DIRECTORS AND STAFF
I would like to thank my fellow directors, staff and consultants for their
support and dedication which has ensured the continued success of the Company. I
look forward to the future with confidence.
Professor Richard Conroy
CHAIRMAN
28 February 2005
BALANCE SHEET
At 30 November 2004
November 2004 November 2003 May 2004
(Unaudited) (Unaudited) (Audited)
Euro Euro Euro
Fixed Assets
Mineral interests 5,628,260 5,679,256 6,202,068
Tangible assets 64,559 51,717 54,482
Financial assets 0 0 2
_________ ________ _________
5,692,819 5,730,973 6,256,552
Current Assets
Debtors 161,361 6,192 45,046
Cash in hand 43,039 1,354,229 517,862
_________ ________ ________
204,400 1,360,421 562,908
Creditors:
Amounts failing due within one year (1,292,241) (1,117,706) (1,028,342)
_________ _________ _________
Net Current (Liabilities)/Assets (1,087,841) 242,715 (465,434)
_________ _________ _________
Net Assets 4,604,978 5,973,688 5,791,118
_________ _________ _________
Capital and Reserves
Called up share capital 1,846,320 1,846,320 1,846,320
Capital conversion Reserve Fund 30,617 30,617 30,617
Share premium account 4,648,065 5,685,976 5,673,065
Profit and loss account (1,920,024) (1,589,225) (1,758,884)
_________ _________ _________
Shareholders' Funds 4,604,978 5,973,688 5,791,118
_________ _________ _________
PROFIT AND LOSS ACCOUNT
For half year ended 30 November 2004
November 2004 November 2003 May 2004
(Unaudited) (Unaudited) (Audited)
Euro Euro Euro
Operating expenses (162,203) (156,955) (331,321)
Other income 1,063 888 5,595
________ ________ ________
Los for period (161,140) (156,067) (325,726)
Profit and loss account at 1 June (1,758,884) (1,433,158) (1,433,158)
Profit and Loss account at 30
November (1,920,024) (1,589,225) (1,758,884)
_________ __________ _________
Loss per share (Euro0.003) (Euro0.003) (Euro0.006)
CASH FLOW STATEMENT
For half year ended 30 November 2004
November 2004 November 2003 May 2004
(Unaudited) (Unaudited) (Audited)
Euro Euro Euro
Net Cash Outflow from Operating
Activities (1,446) (157,781) (444,490)
Capital Expenditure and Financial
Investments (452,381) (485,183) (1,026,190)
________ ________ _________
Net Cash Outflow before financing (453,827) (642,964) (1,470,680)
Financing 0 1,694,358 1,685,707
________ ________ ________
(Decrease)/Increase in Cash (453,827) 1,051,394 215,027
This information is provided by RNS
The company news service from the London Stock Exchange
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